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Fannie Mae “House Washington” Initiative




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House Washington Description
Fannie Mae description
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Eleanor Holmes Norton press release

Franklin Raines, Tony Williams, at Douglass House, April 27, 1999
Franklin Raines and Tony Williams at Douglass House, April 27, 1999

Fannie Mae

Contact: David Jeffers
(202) 752-5962
Office of the Mayor
Peggy Armstrong (202) 727-5011

April 27, 1999

Mayor Anthony A. Williams, Fannie Mae's Franklin D. Raines Launch $1 Billion “House Washington” Initiative

WASHINGTON, DC — Standing before the historic home of abolitionist Frederick Douglass in Washington, DC's Anacostia neighborhood, Washington, DC Mayor Anthony A. Williams and Fannie Mae Chairman and CEO Franklin D. Raines launched the $1 billion "House Washington: The District of Columbia/Fannie Mae Homeownership Initiative." The initiative is the largest single investment by a private company in the history of the nation's capital.

Fannie Mae (FNM/NYSE), the nation's largest source of financing for home mortgages, has committed to invest $1 billion in this sweeping four-year initiative designed to build and accelerate a new era in Washington by boosting community development and renewing neighborhoods.

House Washington will intensify housing and economic development investment intended to improve neighborhood infrastructure and remove regulatory barriers to residential development.

"We are on the threshold of a renaissance in Washington," Mayor Williams said. "House Washington makes good on the promise we made to marshal the resources of the private sector to bring about an exciting new era of neighborhood revitalization, business growth and long-term investment in our greatest assets: our citizens and our neighborhoods."

Working in partnership with lenders and others in the business, nonprofit, and public sector communities, Fannie Mae will invest in employer-assisted housing initiatives, single-family loan products with flexible underwriting and home buyer counseling features, and "high-impact" capital investments in targeted neighborhoods.

"This $1 billion investment will serve first-time home buyers. It will serve all neighborhoods. It will serve low-, moderate-, and middle-income families throughout the District," Raines said. "And it will serve families who rent. whether they live in single-family or multifamily rental units. We recognize that not everybody is ready for homeownership right now, and we want to make sure those not ready to become homeowners have good, decent affordable rental housing.

"Fannie Mae is enormously optimistic about the prospects for Washington, DC, and the possibilities for increasing homeownership opportunities for current and future DC residents," said Raines. "House Washington will be a catalytic event in the history of DC neighborhoods and the overall future of our nation's capital."

Fannie Mae's House Washington initiative is a nine-point plan to: reclaim city-owned properties; re- engineer the regulatory process; expand Employer-Assisted Housing;

  • launch a citywide homeownership initiative:
  • support multifamily small loans;
  • create $100 million in investment capital;
  • complete the Howard University LeDroit Park Neighborhood Partners Initiative;
  • develop new Neighborhood Partners Initiatives;
  • and support neighboring communities.

"Washington is a city of great monuments," Mayor Williams said. "We stand here at the steps of the Frederick Douglass Home, a monument to a man who helped shine the light of freedom into every corner of our society.

"Through this new initiative, we will build new monuments to family, community and opportunity across every sector of this city, through the creation of new homeowners and the revitalization of neighborhoods," Williams said.

"Our announcement today signals our commitment to make Washington, DC a city where everyone can achieve the American dream of living and working where there are decent, affordable homes, safe streets. and neighborhoods we all can be proud of," Williams said.

Joining Williams and Raines were key elected officials and representatives from the Greater Washington Board of Trade and the DC Hospital Association, both of whom have joined Fannie Mae in supporting and encouraging the city's employers to become Employer-Assisted Housing partners. Each of these partners will play a role in advancing House Washington to provide affordable housing and rental opportunities throughout the nation's capital.

"The need to provide affordable housing in the nation's capital is palpable, and I am grateful that Fannie Mae and the city are working to meet this need in new and innovative ways," said Congresswoman Eleanor Holmes Norton (D-DC). "With the use of my $5,000 home buyer credit and other tax credits and creative initiatives, the District will show the country what can be achieved by a creative collaboration."

"The partners of House Washington, the city and Fannie Mae, are to be commended for their critical thinking and dedication to eliminating regulatory barriers so that the good work of neighborhood revitalization can continue," said DC Council Chair Linda Cropp. "The partnership combines an abundance of resources that will help infuse new vitality throughout Washington. "

The Chair of the Economic Development Committee, Council member Charlene Drew Jarvis said, "The National Capital Revitalization Corporation (NCRC) is a special initiative that I introduced and shepherded through the Council, the Office of the Mayor, and Congress. I'm personally excited to see the newly formed NCRC play such an important role in this public/private partnership that will ultimately transform once decaying neighborhoods into essential, thriving communities."

"House Washington is a mammoth financial and social undertaking," said Mayor Williams. "We will make this an even greater city when private companies such as Fannie Mae step up to the plate to address the big issues of economic and community development."

Fannie Mae already has been a critical source of affordable mortgage financing for homeownership and rental housing throughout the District, Raines said. "In the 1990s alone, we invested more than $2 billion in mortgages for homes in all four quadrants of the city. Now we'll invest $1 billion over the next four years."

In December 1998, Fannie Mae celebrated the completion of the first homes renovated under the Howard University LeDroit Park Initiative, a strategic partnership that will serve as a national model for community revitalization efforts in other urban areas. The effort was designed to create homeownership for moderate-income families and spur renovation of abandoned housing in the LeDroit Park area. Since the formation of this partnership, Fannie Mae has invested more than $23 million in the Howard University/LeDroit Park community.

Raines said, "Our partnership with Howard University demonstrates a fundamental operating principle of our Washington, DC strategy: to identify key partners and key projects in the city's most challenging neighborhoods, to demonstrate the vibrancy and viability of these communities, and, with our partners, to help stimulate and lead a transformation of these neighborhoods."

Working with the newly formed NCRC, Howard University, the federal government, and private sector partners, Fannie Mae will allocate hundreds of millions of dollars in investment capital to complete the revitalization of the historic LeDroit Park and Georgia Avenue neighborhoods.

As part of House Washington, Fannie Mae also is exploring the opportunity to replicate the success of its LeDroit Park Neighborhood Partners Initiative in other areas of the city.

The Fannie Mae Foundation, a separate entity from, but fully funded by the Fannie Mae corporation, is also a major partner in Washington, DC. As the largest private funder of neighborhood and community development efforts in the District of Columbia, as well as the largest source of philanthropic funds in the Washington area serving those who are homeless, the Fannie Mae Foundation has invested approximately $50 million in Washington efforts over the past ten years.

Over the four years of the House Washington initiative, the Fannie Mae Foundation will invest $55 million, which will include grants, new Community and Neighborhood Development Fund loans, and direct program spending.

"Through the Fannie Mae Foundation, we believe effective neighborhoods involve a network of relationships among people and institutions that support community development and meaningful participation in civic life," Raines said. "The Foundation recognizes that other aspects in addition to affordable housing contribute to the vibrancy of a community and it is committed to making significant investment of its programs, volunteer efforts, and grant and loan funds to revitalize DC neighborhoods."

Raines also announced that the Fannie Mae Foundation, in cooperation with the Washington Wizards, will conduct a Washington DC Home Buying Fair on June 26. The event will bring together lenders, non-profit agencies and real estate professionals to offer potential home buyers a one-stop opportunity to learn how they can buy their first homes.

Raines added, "Mayor Williams and I have spoken at length about a new era for DC residents. We believe that District communities are alive and thriving, that neighborhoods are diverse, and that the sense of community is strong. Children are in safer, more stable environments and are supported by community resources that encourage independent growth and development. Fannie Mae and the Fannie Mae Foundation are proud, in support of Mayor Williams, to play a role in helping Washington, DC express its fullest potential."

For more information on the DC Partnership Office and House Washington or a list of local lenders, please contact the Fannie Mae Consumer Resource Center at 1-800-7-FANNIE (1-800-732-6643) between the hours of 9:00 a.m. to 5:00 p.m. EDT Monday through Friday. To receive a free copy of the Fannie Mae Foundation guide, Opening the Door to a Home of Your Own, please call its toll-free number, 1-888-752-7170.

Fannie Mae is a New York Stock Exchange company and the largest non-bank financial services company in the world. It operates pursuant to a federal charter and is the nation's largest source of financing for home mortgages. Over the past 30 years, Fannie Mae has provided nearly $2.5 trillion of mortgage financing for over 30 million families. More information about Fannie Mae can be found on the Internet at http://www.fanniemae.com .

Style Usage: Fannie Mae's Board of Directors has authorized the company to operate as "Fannie Mae, and the company's stock is now listed on the NYSE as "Fannie Mae. " In order to facilitate clarity and avoid confusion, news organizations are asked to refer to the company exclusively as "Fannie Mae. "

The Fannie Mae Foundation, a private nonprofit solely funded by Fannie Mae, transforms communities through innovative partnerships and initiatives that revitalize neighborhoods and create affordable homeownership and housing opportunities across America. http://wwwfanniemaefoundation.org

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Fact Sheet


House Washington is a $1 billion, four-year effort to remove regulatory barriers, expand homeownership and rental opportunities, and meet community development needs throughout Washington, DC, with an emphasis on parts of the city that have been passed over by development in recent years. The plan includes nine points:

1. Reclaim City-owned Properties
Develop a plan to clear title to 1,200 city-owned tax sale properties over four years, and provide $50 million in rehabilitation financing with special underwriting flexibilities and technical support for comprehensive home buyer education;

2. Re-engineer the Regulatory Process
Reduce from months to days, the time required to process and approve construction permits, as well as provide technical assistance and funding to implement the Mayor's Transition Report recommendations;

3. Expand Employer-Assisted Housing
Recruit the top 15 DC-based employers, including the DC Government, to participate in Employer-Assisted Housing Programs (EAHP). Then link the federal $5,000 tax credit for first-time homebuyers in DC to EAHPs and purchase $10 million in EAH Down Payment Assistance Investment Notes to fund 1,200 loans, which will result in $180 million in new originations;

4. Launch a Citywide Homeownership Initiative
Work with the District of Columbia Housing Finance Agency (HFA) and the Department of Housing and Community Development to purchase $100 million in MRBs to fund 1,000 new home purchases. This will yield savings to the HFA to support homeownership education for 1,500 potential purchasers and credit counseling education for existing city residents. Purchase a $15 million Down Payment Assistance Investment Note to leverage the city's Home Purchase Assistance Program, providing funding for an additional 1,000 loans;

5. Support Multifamily Small Loans
Buy $20 million in small multifamily loans (five to fifty units), financing the acquisition, rehabilitation and permanent loans for 50 affordable apartment properties;

6. Create $100 million in Investment Capital
Commit to co-invest $75 million in debt and equity from Fannie Mae's American Communities Fund, to leverage the $25 million federal commitment to the newly formed National Capital Revitalization Corporation. Provide technical assistance to support planning and implementation of National Capital Revitalization Corporation investments;

7. Complete the Howard University LeDroit Park Neighborhood Partners Initiative
Provide $40 million in financing for housing construction and housing rehabilitation under the HomeStyle Initiative. Build on the investment of Howard University, Fannie Mae, and the Fannie Mae Foundation. Partner with the city and the federal Department of Transportation to leverage $25 million for the construction of new custom streetscape improvements in historic LeDroit Park, and repair and rebuild infrastructure throughout the balance of the 150-block focus area;

8. Develop New Neighborhood Partners Initiatives
Support two investment initiatives that are aligned with the Mayor's areas of focus; and

9. Support Neighboring Communities
Invest $200 million in tangible housing-related development in communities bordering Washington. DC.

House Washington
The Fannie Mae Foundation

The Fannie Mae Foundation will support neighborhood revitalization and community development efforts under House Washington through the following initiatives:

1. Housing and Community Development
The Foundation will invest $22 million in targeted DC neighborhoods to support specific community transformation initiatives identified as priorities by neighborhood residents, resulting in approximately 2,500 units of affordable housing in the District positively impacted through construction or rehabilitation;

2. Human Development
The Foundation will invest $16.5 million in wealth-building initiatives, crime prevention strategies, and health and human services programs, to enhance the ability of up to 40,000 residents in targeted, underserved DC neighborhoods to improve quality of life in their communities. Approximately 45,000 DC youth will be provided with a comprehensive array of initiatives to prepare them for career, college, and successful adulthood;

3. Community Service and Volunteerism
The Foundation will invest $6.3 million in community service and volunteerism initiatives that leverage Foundation philanthropic dollars spent in the DC metro area. In addition, the Foundation will encourage 120,000 hours of volunteer service to take place over four years by annually engaging up to 1,500 Fannie Mae Foundation and Fannie Mae employees to support up to 200 DC metro area nonprofit groups each year. Over 100,000 DC metro area youth will be engaged in service to end homelessness over a four-year period ending in the year 2000 — impacting over 200 homeless service providers;

4. Civic Engagement and Renewal
The Foundation will-invest $4.4 million to support resident-lead community improvement efforts to enhance the capacity of neighborhood residents to work collaboratively within their communities and externally to effect positive change where they live. We will effectively train more than 400 City managers and 147 District Public School System principals and administrative managers contributing to a more effective DC government and Public School System as a result of leadership development. The Foundation will work to engage more than 300 DC metro area business leaders to promote more effective business philanthropy;

5. Arts and Humanities
The Foundation will invest $4.4 million to support the Arts and Humanities initiatives of up to 30 nonprofits, reaching an audience of up to 50,000 individuals, including District Public School System students; and

6. Special Initiative-Nonprofit Management Assistance Program
The Foundation will invest $1.4 million in management assistance efforts that will improve the organizational effectiveness of up to 100 DC metro area nonprofit groups each year.

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Fannie Mae
House Washington
The District of Columbia and Fannie Mae Homeownership Initiative

House Washington is a partnership between Fannie Mae, the District of Columbia, and mortgage lenders and industry partners that offers mortgage options for low- to middle-income home buyers in the Greater Washington area.


Fannie Mae helps make sure mortgage money is available for people in communities all across America. Fannie Mae does not lend you money directly. Instead, Fannie Mae works with lenders to make sure they don't run out of mortgage funds, so more people can achieve the dream of homeownership.


(1) Read the information in this package.

(2) To apply for a loan or get more information, contact a lender on the list enclosed.

(3) If you're not sure you're ready to buy a home, call Fannie Mae at 1-8007FANNIE (1-800-732-6643) and ask for a HomePath specialist who can provide step-by-step assistance.

(4) Visit www.HomePath.com for comprehensive mortgage finance information, including online access to HomePath specialists, links to lender Web sites, and loan calculators that help determine how much you can afford to borrow.


Fannie Mae's Flexible 97® — a 30-year, fixed-rate mortgage that allows you to use personal savings; a gift from a family member; a loan secured by a marketable asset (such as a certificate of deposit, a 401(k), the cash value of your life insurance, or other real estate); or a loan or grant from a nonprofit or government agency for the 3 percent down payment.


  • You have limited cash for closing costs.
  • You need a low down payment.
  • Meet income requirements.

Fannie Mae's Community Home Buyer's ProgramSMMortgages requiring less income to qualify and less cash for closing than traditional mortgages. A fact sheet explaining this program is enclosed.


  • You need a low down payment (as low as 5 percent).
  • The home will be your primary residence.

Fannie Mae's HomeStyle® Mortgages — borrow money in a single loan to buy and repair or renovate your home, based on what the property will be worth after the work is done. With the HomeStyle Community Mortgage 3/2 Options®, pay as little as 3 percent down and use a gift, a grant, or a government or nonprofit loan to pay the remaining 2 percent of your down payment.


  • You are 62 years of age or older.
  • You own your home and have little or no mortgage balance.

Fannie Mae's Home KeeperSM and Home Equity Conversion Mortgage (HECM) — borrow against the equity in your home or condo to get cash. Repayment is not required as long as you live in the home. You also may be eligible for the Home Keeper for Home Purchase Mortgage, which allows you to buy a home with no repayment due as long as you live there. Call a Reverse Mortgage Specialist at 1-800-7FANNIE (1-800-732-6643) for more information.

Fannie Mae
3900 Wisconsin Avenue, NW
Washington, DC 20016-2892

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Fannie Mae
3900 Wisconsin Avenue, NW
Washington, DC 20016-2892
phone: 202-752-7000

April 1999

Fannie Mae (FNM) is a New York Stock Exchange company and the largest non-bank financial services company in the world. It operates pursuant to a federal charter and is the nation's largest source of financing for home mortgages.

One of the largest corporations in America, Fannie Mae has $501 billion in assets and an additional $660 billion in net Mortgage-Backed Securities outstanding. The company is one of the largest issuers of debt after the U.S. Treasury. Fannie Mae has approximately 365,000 shareholders and is part of the Standard & Poor's 500 Index.

Since its inception in 1938, Fannie Mae has provided a constant source of mortgage funds for home buyers by investing in mortgages from institutions that originate them, such as savings and loans, mortgage companies, and commercial banks.

Fannie Mae has two major lines of business: portfolio investment and Mortgage-Backed Securities. The company buys residential mortgages for its investment portfolio and earns a spread between the yield on portfolio investments and the cost of debt funding those investments. Fannie Mae also receives pools of mortgage loans from lenders and exchanges them for Mortgage-Backed Securities, which the company guarantees. A "guaranty fee" paid to Fannie Mae assures the timely payment of monthly principal and interest to investors in these securities.

Today, more than 14 million American families live in homes Fannie Mae has helped finance. In 1998, Fannie Mae purchased or guaranteed $409 billion of home mortgages from nearly 1,300 mortgage lenders.

Chairman and Chief Executive Officer: Franklin D. Raines
President and Chief Operating Officer: Lawrence M. Small
Vice Chair: Jamie S. Gorelick
Executive Vice President and Chief Financial Officer: Timothy Howard
Total Assets: $500 billion
Net Mortgage-Backed Securities Outstanding: $660 billion
Earnings: 1998 — $3.4 billion
Number of Employees: 3,800
Headquarters: Washington, DC
Regional Offices: Atlanta, Chicago, Dallas, Pasadena, Philadelphia

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3900 Wisconsin Avenue, NW
Washington, DC 20016-2892
phone 202 752 7000

Franklin D. Raines

Franklin D. Raines is Chairman and Chief Executive Officer of Fannie Mae, a New York Stock Exchange company and the largest non-bank financial services company in the world. Fannie Mae is the nation's largest source of financing for home mortgages. He became Chairman and Chief Executive Officer on January 1, 1999.

The Fannie Mae Board of Directors designated Raines as the successor to James A. Johnson in April 1998. From May through December 31, 1998, Raines served as Chairman and CEO-Designate while a transition process occurred.

Raines stepped down as Director of the Office of Management and Budget (OMB) and a member of the President's Cabinet on May 20, 1998, after two years of service. Raines was the President's key negotiator in the talks that led to passage of the bipartisan Balanced Budget Act of 1997. Raines was the first OMB director in a generation to balance the federal budget. Raines also helped the President manage the federal government by coordinating procurement, financial management, information technology, and regulatory policies for all federal agencies.

From 1991 to 1996, Raines was Vice Chairman of Fannie Mae, in charge of the company's legal, credit policy, finance, and other corporate functions.

Prior to joining Fannie Mae, Raines was with Lazard Freres & Company for 11 years where he was a general partner. Before joining Lazard Freres, he served from 1977 to 1979 as Associate Director for Economics and Government in the Office of Management and Budget, Executive Office of the President; and Assistant Director of the White House Domestic Policy Staff.

Raines serves as a member of the board of directors of Fannie Mae, Pfizer Inc., America Online, Inc., and as chairman of the Visiting Committee of the Harvard Kennedy School of Government, and was formerly President of the Board of Overseers of Harvard University.

Raines served as a member of the congressionally-mandated Commission on Roles and Missions of the Armed Forces. He has also served on a number of federal and state public policy advisory groups regarding tax equity, education, poverty, and welfare reform.

Raines was elected a Fellow of the American Academy of Arts and Sciences, and a member of The Business Council, the Trilateral Commission, the National Academy of Social Insurance, and the Council on Foreign Relations.

Raines was graduated magna cum laude with a B.A. degree from Harvard College. He was graduated cum laude with a J.D. from Harvard Law School. He also attended Magdalen College, Oxford University as a Rhodes Scholar.

January 1999

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District of Columbia

For Immediate Release
April 27, 1999
Contact: Donna Brazile or Sean Gralton
(202) 225-8050
Web Site: http://www.house.gov/norton


Washington, D.C.— Congresswoman Eleanor Holmes Norton (D-DC) announced that she was introducing a bill today to make her $5,000 D.C. homebuyer credit permanent because it is "the best hope for replenishing the population decline in the District of Columbia." She made the announcement at the Frederick Douglass National Historic site, where a major housing and neighborhood investment plan for the District was unveiled by Franklin Raines, CEO of Fannie Mae, and Mayor Anthony Williams. Her statement follows:

I have chosen to introduce the District of Columbia $5,000 Homebuyer Credit Act, a permanent version of my $5,000 homebuyer credit, today, because Fannie Mae has significantly increased the credit's value to D.C. residents by monetizing the $5,000 credit. This means that D.C. residents will be able to convert the $5,000 homebuyer credit to cash to help make the down payment on a house. The credit alone would be the down payment on a $100,000 house in the District, As a result, for a $100,000 house, no down payment would be necessary.

I am pleased that the President has already agreed to a one year extension of the credit in his budget, and this extension is likely to be approved. We can't stop now, however. The credit has had the phenomenal effect of helping to make D.C. number one in home sales in the country. Home sales in the District increased an extraordinary 50% last year, 'the fastest pace in the nation,' according to a local analysis, We have gone from 14,206 homesales in 1997, when the credit was enacted, to 21,406 last year. We have come from a few years back when people couldn't sell to where people can't buy today. This is why Fannie Mae's effort to increase the supply of affordable housing is so welcome, Indeed, what Fannie Mae and the city announce here today is indispensable if the District is to accommodate the pool of people willing and eager to buy in the city.

The $5,000 homebuyer credit, coupled with a rapid increase in housing stock and investment, are the best hope for increasing our population on a permanent basis. When people buy homes, they lay down roots and are less likely to flee. We have already lost three times the population in this decade as we lost in the last decade, and we are still losing population. The credit has helped stimulate new population and could ultimately help turn our population loss around.

For years, I have searched for natural ways to Increase revenue for the District. My large tax cut bill, the progressive flat tax, is a major leap forward and it is still alive and kicking. I have an upcoming meeting with the Senators whom I worked with closely on my other D.C. tax breaks. I will soon be announcing a bill to make the entire city an enterprise zone, spreading citywide the lucrative tax breaks for D.C. businesses I won in the 1997 Taxpayer Relief Act However, as the city looks for revenue, it must not lose sight of the reality that there can be no permanent increase in revenue without a permanent increase in our population. Investment in housing is the best way to achieve not only a liveable city in all eight wards, but a thriving city of taxpaying residents who own their own homes.

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